Depressing difference in house price outcomes

[coldaire]

I’m a teacher, as is dh. When training to be a teacher we made some lifelong friends who became a couple and got married.

None of us come from any family money. So just teacher’s salary.

We bought where we were from in the North. Bought in a nice place near a city. Paid £250k for our house in 2006. Our friends bought in a good part of London for £250k in 2006.

Our house is now worth about £370k. Our friends house in London is worth £1.6mil. Neither of us have extended and they’re both a similar size.

Friends have now sold up, retired to the coast, and given their daughter £800k towards a house so she can buy in London and is starting a family.

We could sell our house of course, but even giving £100k to our daughter is no where near going to help her buy a similar house to friend’s daughter.

@browniesareyum yes, it’s really weird. I guess they only ever go to certain places.

Yep it's so depressing, houses are also now unattainable to anyone under 35 where I live as they are now so expensive. Basically a few people got rick quick through sheer luck and generations will suffer for it

But it’s relative isn’t it? So if you did give your dd £ 100k that would go a long way to buy a good house where you currently live ( if your house costs just under £400k). It’s a great 25% deposit! Or more if she buys something smaller than you have right now then she can climb ladder as everyone has to.
£100k would be a great deposit in London too!

If I got my imaginary 800k from my imaginary London parents, I'd relocate up north, buy a mansion for 300k cash, and use the 500k change to supplement my (very part time) earnings from selling my home made pots and sculptures. I don't think I'd feel at all bad for not working hard.

£100k for doing nothing but inheriting from your parents sounds like privilege to me.

Otherwise, should we all be depressed because Elon Musk is a billionaire - do I need to feel shit about my life because of it??

@browniesareyum I agree that CC is a sad place now but that’s happened to lots of high streets/shopping centres & I think the rest of the high street has quite a good offer compared to many other parts of S London. Traffic is bad but where isn’t these days, went through Streatham recently & it was horrendous. I do agree re houses in parts of the North, often I see listings posted on here for beautiful period properties renovated to high standards at bargain prices vs London. I stay because DH & I are from in & don’t have family elsewhere but its completely overpriced. I think hybrid working & just very high prices has pushed more people further out in London & the outskirts. We are looking at moving to z4 or 5 soon & have a decent budget but I actually want some space for that price!

I think it's a bit different when the comparison is with your friends though. They bought at the same time but in different parts of the country and the outcome was vastly different. I agree that comparison is the thief of joy but not comparing is easier said than done.

I'm the same. Looking to move away ish. I did rent in Surrey to see if that was an area I'd like, but I missed the London buzz, maybe because I'm just used to it. Yep, I agree, Wimbledon still has appeal for sure, I just compare it to even 15 years ago and it's just... not the same. It's changed a lot. I think it's like that everywhere as you say. I'm just more disappointed that it's like that now and even the other week, it just felt a bit rough. It was never like that for me before.

I was shocked to see house reductions in central area, I never thought that would happen, but it has. it just shows, location is all about what the area actually offers us. I think london prices will continue to fall until it reaches a happy place, while other outer areas will increase. I was in London during the lockdown and it was really hard and really changed my mind about the city. I just hope i grow out of this "city vibe" need in me as it's going to cost me a very expensive mortgage.

where have you looked in zone 4/5? I think it's totally doable and nice family areas and good access to central London if you need that with the trains. Hybrid/remote work has changed my life for the better!

It's definitely easier said than done. But the North has so many great things. people are much nicer and friendlier! for one. I think OP doesn't realise they have a lot and they have paved a better life for their daughter. that sounds like gold :)

If it makes the OP better loads of my colleagues are older than me (some only 5 yrs or so) but they all were on the property ladder by the early 00s when I was just going to uni. They all have million pound plus houses which cost very little & very good final salary pension schemes. I’m not bitter 😆

You’re still in a good position but I do know what you mean. I wish I could go back and tell 22 year old me to buy something - anything - in London and just make money that way. But that’s life, and hopefully they appreciate their good fortune.

I worked out that I would be in a much better financial position now if I didn't go to uni, worked full time in my holiday retail job

Posted too soon!

& got a 95% mortgage possibly an interest free one & just bought anything in London.

Education does not pay! 😆

I think it's extremely depressing, but it's also slightly obvious depending on the area you choose as some are better than others. The gaps are ridiculous though, but thats because people are stupid and created this. Surely London will always go up & up?

Bullshit.

I bought my 3 bed semi in zone 3 London in 2005 for £325k. It now is worth around £900-950k and I've added 2 bedrooms and a bathroom with a loft conversion. It's over 2000 square ft so a decent size. I doubt very much they paid £260k for a house that sold for £1.6 mil.

been there, done that calculation!! haha
I literally just said to my partner, maybe I should have taken that job after graduating instead of doing a masters degree and taking a more academic route.
ugh
no point it looking back.
I don't know your age, but I'm guessing your still young. We just have to be wiser going forward !!

personally I blame Labour with their "education, education, education" BS. Honestly, that messed up more millenial futures. Now you don't need a degree for most jobs!

good point tbf.

@coldaire can you share the street? or nearby road? I'm just curious to see the change in prices in 2024

We brought 10 years ago - our house is worth more than some streets we looked at.

some have risen by £80K outs by £150K - all similar prices back then.

Luck of the drawer.

Have any of you actually been to Wimbledon recently? Centre Court no longer exists and is called Wimbledon Quarter wimbledonquarter.com/ and McDonalds hasn't been there for quite a while!
I'm sceptical about the figures too - bought a house in a sought after area of Wimbledon in 2005 for £600k and it's probably worth double that now.

I think the constant property porn TV shows are to blame.

People expect that property will increase massively in value. Whereas the reality is that it is only in the south of England where a lot of property has increased.

In your northern and midlands new build estates many properties, especially flats and smaller houses have not put any serious money on since 2007.

My house when I bought it in the late 2010s was well below its new cost in 2005 + inflation over the time period. I think if the owner had put the purchase cost money in the bank they would have made 50k more at least.

The idea that property only goes up/outpaces other investments may be true in London, but is isn't true in stagnating northern cities.

Well that’s a daft comparison. Presumably you didn’t want to live, work and buy a house in London or you would have.

I lived and worked in London for ten years and loved it but I couldn’t afford to buy a property there because I was single. I do look back and miss the lifestyle I had but I never compare my current house in my area with houses of my old London friends. (Mind, several live in tower block social housing as they are teachers so not in the league of your friends.) It’s just pointless.

A £800,000 gift? I do actually think that is ridiculous but I suppose it’s all relative if you are mega rich and I am not from a background where parents gave you money towards a home so that is another world to me.

I bought a house in 2017 so 🤷🏻‍♀️

We are teachers and we’ve lost money on our flat in London.

it’s all a gamble.

plus your child is likely to be able to afford a house where they grew up. London kids can’t unless they are high high earners.

Be careful what you wish for!